Cambodia rice exports set to double

Unlike Thailand’s, neighbour Cambodia’s rice exports have been surging over the first 7 months of 2013 and already surpassed the total figure achieved for the entire year 2012.

In 2012, Cambodia shipped 205,000 tonnes of rice abroad, but official data from January to July 2013 shows the country has already exported 207,000 tonnes, the Phnom Penh Post reported on August 5.

The reason behind the surge is that Cambodia benefits from duty-free tariffs under the European Union’s Everything But Arms agreement, which saw 60 per cent of its rice sent to the European market.

Cambodia projects that it will export a total of 500,000 tonnes of rice this year, a volume expected to grow to at least 1 million tonnes by 2015, according to the Cambodian Ministry of Economy and Finance.

Thailand is currently the loser in the rice competition with its neighbours due to its controversial rice subsidy scheme for farmers which makes its rice much more expensive for global buyers.

Thailand used to be the world’s leading rice exporter, but since has fallen behind India and Vietnam. Meanwhile Thai rice stocks, which are now too expensive to be sold, have soared to almost 18 million tonnes. The government managed to get rid of a few 100,000 tonnes of rice in direct sales to other governments, but faced significant losses. It is feared that if Thailand releases its overstock, pressure on world market prices would be significant.

According to experts, if Thailand continues its populist scheme that mainly aims at holding a rural voter base loyal to the current government, then even countries such as Indonesia, the Philippines and Myanmar will be able to establish themselves as competitive rice exporters.

Unlike Thailand’s, neighbour Cambodia’s rice exports have been surging over the first 7 months of 2013 and already surpassed the total figure achieved for the entire year 2012.

In 2012, Cambodia shipped 205,000 tonnes of rice abroad, but official data from January to July 2013 shows the country has already exported 207,000 tonnes, the Phnom Penh Post reported on August 5.

The reason behind the surge is that Cambodia benefits from duty-free tariffs under the European Union’s Everything But Arms agreement, which saw 60 per cent of its rice sent to the European market.

Cambodia projects that it will export a total of 500,000 tonnes of rice this year, a volume expected to grow to at least 1 million tonnes by 2015, according to the Cambodian Ministry of Economy and Finance.

Thailand is currently the loser in the rice competition with its neighbours due to its controversial rice subsidy scheme for farmers which makes its rice much more expensive for global buyers.

Thailand used to be the world’s leading rice exporter, but since has fallen behind India and Vietnam. Meanwhile Thai rice stocks, which are now too expensive to be sold, have soared to almost 18 million tonnes. The government managed to get rid of a few 100,000 tonnes of rice in direct sales to other governments, but faced significant losses. It is feared that if Thailand releases its overstock, pressure on world market prices would be significant.

According to experts, if Thailand continues its populist scheme that mainly aims at holding a rural voter base loyal to the current government, then even countries such as Indonesia, the Philippines and Myanmar will be able to establish themselves as competitive rice exporters.